The price charged for the internal sale of a product between two different divisions of the same company is known as the:
a) transfer price.
b) sales price.
c) transfer cost.
d) margin price.
Answer is a) transfer price (The transfer price becomes sales revenue for the selling division and a cost for the buying division. Therefore the operating income ROI sales margin and residual income of each division will be affected by the transfer price that is uses. setting a fair transfer price is often difficult since each division will want to maximize its own profits.)
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Insisting on competitive bidding can cause complications in:
A) low-context cultures B) high-context cultures. C) low and high context cultures. D) Korean cultures. E) Japanese cultures.
Which one of the following statements correctly describes the major drawback of a zero-coupon bond?
A) Unless the bond is held in a tax-sheltered account, the investor must pay taxes on the annual accrued interest even though no interest is actually received. B) The conversion feature found on most zero-coupon bonds generally requires the investor to switch to a coupon-bearing bond after a period of 5 years. C) The lack of an annual coupon basically prohibits the investor from locking in a high rate of return. D) Because there is no reinvestment of a coupon payment, large capital losses accrue when interest rates decline.
No assumptions are made about the population distributions or variances of the above sample data. The test question is: Are the medians of the treatments equal? What is the rank of the value in the third treatment and fourth block?
Identify which of the following statements is false.
A) Annuities not related to employment are valued in the gross estate at the cost of a comparable contract multiplied by a fraction that represents the portion of the purchase price that the decedent has contributed. B) If an annuity ceases payments with the death of the decedent and nothing is to be received by any other party, the annuity is included in the gross estate. C) When persons other than spouses own property jointly, the amount included in the joint owner's gross estate is measured in accordance with the consideration the decedent furnished to purchase the property. D) Statements A and C are true.